Demonetisation: The Reserve Bank of India has finally opened up on the demonetisation debate after various contradictory claims by both the government and the central bank. While earlier it was reported the Modi government took the decision and virtually imposed it on the RBI, now it seems that is not the case. So, who took the decision to scrap Rs 500 and Rs 1,000 notes? RBI has told the the Parliamentary panel that the note ban was a joint decision taken by both government and the central bank mutually. After a parliament panel was formed to throw light on the exact course of the demonetisation move, the RBI refused to share any specific detail on the same initially. As per media reports, the RBI denied to comment on the demonetisation move made by the central government citing need to maintain secrecy, integrity, security and even danger to life.

After various allegations were thrown at the Modi government and the RBI, the central bank in a 7-page note to Parliament’s Department-Related Committee of Finance headed by Congress leader M Veerappa Moily said that the government, on November 7, 2016, had advised the Reserve Bank of India to crack down on on the triple problems of terrorist financing, black money laundering and currency counterfeiting. And as part of that exercise, the decision to junk Rs 500 and Rs 1,000 notes was taken mutually. Digging deeper into the issue, India Today in its report has revealed what really transpired during the exchanges between the Modi govt and RBI. Check out here all the big revelations from RBI’s note to Parliament panel justifying its stand on the entire demonetisation episode:

1. As per RBI’s note, the decision to demonetise high-value currency was taken mutually by both RBI and the central government.

2. The prime intention to scrap the old currency notes was to stop the counterfeiting business going on in the country as well as abroad. The reason behind launching 2,000 currency notes were chosen in the view of inflation and also to have a seamless currency logistics in the country. The RBI also informed that the printing of new value currency started in June 2016. When the new currency had reached critical minimum stock, the final decision on demonetisation was taken.

3. The Reserve Bank of India mooted the introduction of 5,000 and 10,000 rupee notes as early as October 2014, as soon as the BJP came into power.

4. The new and vivid Rs 2,000 notes design was justified by the RBI. It said that the new design will ‘catch the fancy of the public.’

5. The RBI agrees to the fact that it might not be possible to replace notes fully. RBI has claimed that the demonetisation move had no impact on its balance sheets at all.

whoever has implemented credit should go to Modi for pursuing vigorously with dedication..Let us not do postmortem. Let us analyse how now our economy can be planned well..

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John

Jan 13, 2017 at 2:39 pm

Do you really understand what youve stated it is in a case a patient taken on to the operating table for Kidney transplant ,but had Liver transplant.You would turn around and say how best can be done next

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John

Jan 13, 2017 at 2:59 pm

World Bank is made up of financial big wigs representing US and Nato allies.They carelesss for any country their main purpose is to milk countries and get them into Debt Traps.We fo have a risk of economic reversal. the world bank has also down graded .The Purpose was to bring back BLACK MONEY,the banks recieved 92% of the inventory.THIRDLY a Dozen Corporates and Industrial houses owe over 7 Lakh crores to the Banks No action on Recovry.Fourth RSS Core committee found out that NITI AYOG set up for development has NOT delvered any results.earlier we had a National Planning Commission.Agriculture has felt the impact due to demonitization keep your eyes on the CPI.

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Bilal

Jan 15, 2017 at 5:18 pm

Every one knows about the brainless head behind this move but the question is what was the outcome, 97% banned notes are back in banks, then why all this drama. Why were people forced to convert black money into white? to infuse the money into banks and to benefit the riches?

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Nayak

Jan 13, 2017 at 3:23 pm

actually total 500 and 1000 notes in circulation were more than 19 LAKH CROREs. The govt and RBI cannot disclose the fact because it was congress idea to print fake notes from RBI press and release to the market to boost economy, without being answerable to the world bank and without showing gold deposits to print currency.What would happen if the world comes to know that congress govt had indulged in mal practice .. So the govt and RBI are maintaining silence on the above issue.

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Nayak

Jan 13, 2017 at 3:18 pm

asdasdaSDasd

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Rammohan Kannantogo

Jan 13, 2017 at 4:04 pm

RBI admitted that Demonetization is not a plan of RBI. So it's clear Crystal that A Madman's Foolish Announcement.